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How to Use Geofencing Marketing to Increase Sales & Customer Retention

Geofencing is a technology that allows dealerships to reach out in real time to prospective customers not only in your lot but also in your competitors lot. Geofencing marketing is revolutionizing the way we look at prospective customers, our competition and ways we can conquest our competitor's customers. This technology is used as a powerful marketing tool that uses GPS, RFID, cellular data and even Wi-Fi to define strategic areas for applied marketing straight to a potential customers phone. When used strategically, geofencing has the ability to increase sales by consumer conquest and customer retention. 

How Does Geofencing Marketing Work? 

This technology uses smartphones to locate patterns and define areas of travel. Based on these areas, strategic marketing is applied to sway customers purchasing habits once the customer crosses a defined border. Using this technology you can apply marketing techniques that allow your dealership to send special offers and deals to customers once they enter into your competition's lot and when they cross into your lot, as well. This gives your dealership a best foot forward approach.

Increasing Conquest Sales

As Dealer Marketing Magazine further explains, this new way of marketing conquest is needed in today's ultra-competitive environment. By geofencing a competitors lot it allows dealerships to target their customers (conquest) once they cross the border of the defined area into the competitors lot. This allows the dealership to send promotions directly to the customer's mobile phone via mobile ID tied into mobile apps.

Customer Retention.

 Dealerships can use geofencing to define a border around their lot and send promotions to customers crossing into their dealership. By doing this a dealership can greatly increase customer retention by engaging the customer directly through their phone to promote vehicle specials, service deals and improve brand loyalty. Other dealers can geofence your business and there is no way to remove that fence. What you can do is target these customers that are crossing into your lot, put your best foot forward and make sure the sale does not walk. 

Consumer Data. 

Geofencing uses real-time data to effectively quantify behavioral data and create more precise marketing tactics. As with all great technology, real world data is needed to backup the hype. According to a recent article by Bizness Apps, 60% of consumers look for local information on their phones, 40% look for information on the go, 70% are willing to share their location for something in return, and consumers are twice as likely to react to a local promotion. These numbers can translate to big returns for dealerships involved in this technology. 

Interested in more information? Please do not hesitate to contact us to learn more about our eVe program. We can walk you through every step of the process and explain the technology and the benefits of Geofencing marketing. Once we set you up you can start reaping the benefits of this powerful, data-driven way to market. As Auto Dealer Monthly brilliantly states, "If you plan to get in this game, I advise you to get in early — or at least before your competitors."

Watch out AdStack webinar to find out how we use Geofencing to increase sales and service customers for our clients.

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Sean Marra
Sean Marra
CEO of ePush! With over 20 years of experience in automotive, Sean’s fearless approach and instincts put him at the forefront of the industry when it comes to Digital Marketing.

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